ExxonMobil Egypt has discovered natural gas off Egypt’s Mediterranean coast, a significant find that could play a key role in revitalizing the North African country’s struggling oil production, the Texas-based company said in a statement on January 16.
Nefertari-1 well
This marks a significant development in the company’s exploration activities within Egypt’s energy sector, which remains a focal point for local and international energy investments.
Exxon said it completed the exploratory Nefertari-1 well in the North Marakia Block, located about eight kilometers off Egypt’s northern coast. The Nefertari well was drilled in the North Marakia area, which lies at a depth of 1,720 meters in the western Mediterranean Sea.
“Gas-bearing reservoirs were encountered, and we will continue to evaluate the results,” Exxon said.
The well was drilled with Valaris Ltd.’s DS9 drillship, Exxon added.
ExxonMobil is collaborating with QatarEnergy on the North Marakia Block, following a March 2022 agreement in which QatarEnergy acquired a 40% working interest in ExxonMobil’s share of the project. ExxonMobil was awarded the North Marakia Offshore concession in 2020, covering 4,847 km² in water depths of 1,000 to 2,000 meters.
Drilling for natural gas has begun in the West Mediterranean, with Chevron operating the Khanjar-1 well in North Dabaa and ExxonMobil drilling the Nefertari-1 well in North Marakia, according to a January 2025 statement from the Ministry of Petroleum and Mineral Resources.
ExxonMobil Egypt, a subsidiary of ExxonMobil, plays a key role in Egypt’s energy sector as a leading supplier of lubricants and fuels.
Hotspot for oil
The U.S. Energy Information Administration (EIA) stated that Egypt is a key hydrocarbon producer in Africa, ranking as the second-largest non-OPEC producer of liquid fuels on the continent in 2023, just behind Angola.
The EIA also noted that Egypt has been working to position itself as the regional hub for Liquefied Natural Gas (LNG) exports, being the only country in the Eastern Mediterranean with the capacity to export LNG. However, regional instabilities, such as the Gaza-Israeli conflict, which led to the closure of the Tamar Field in October 2023, and Houthi attacks on maritime vessels, have disrupted trade flows, including LNG shipments.
Dip in gas production, state efforts
While Egypt had once aimed to become a key energy hub and supplier for Europe, its gas production dropped to the lowest level since 2017 in June 2024, forcing the country to increase liquefied natural gas imports to their highest in nearly six years.
To address the energy shortfall, Prime Minister Mostafa Madbouly announced plans to import $1.18 billion worth of mazut and natural gas to stabilize domestic supply.
Additionally, a severe dollar shortage led foreign energy companies to slow investments, as they faced growing arrears owed by the government.
In response, Madbouly revealed in December that Egypt had repaid around $7 billion of its outstanding debts in November and December, bringing the total amount paid in 2024 to $38.7 billion, according to a statement from the Cabinet.
In July, Minister of Petroleum and Mineral Resources Karim Badawi announced that 145 exploration and production agreements are active with 40 partners. He also revealed plans to drill 110 exploratory oil and gas wells in FY 2024/2025, with a total investment of $1.2 billion, and a target of 586 wells by 2030, totaling $7.2 billion, according to a ministry statement.
Other exploration activities
In January, the Ministry of Petroleum and Mineral Resources announced that British Petroleum (BP) had successfully drilled two additional gas wells in the Raven Field, a crucial component of its West Nile Delta (WND) project off Egypt’s Mediterranean coast, using the Valaris DS-12 drillship, which began operations in mid-2024.
Additionally, Yassen Mohamed, Chairman of the Egyptian Natural Gas Holding Company (EGAS), reported at a September general assembly meeting that EGAS had signed 11 new agreements with international companies to explore and produce natural gas in the field.
Additionally, the CEO of the Italian company ENI S.p.a Claudio Descalzi announced to Al Arabiya that the company intends to drill two new gas wells in the Zohr field.